The country’s State Pollution Control Boards should not
demand permits for such plants, the Environment Ministry said in
a website statement. Developers must still demonstrate that
they’re not using protected land and have applied for water
permits, according to the statement.

The decision is aimed at preventing delays that have
hampered planning applications in other energy and mining
industries. India is investing in solar projects as economic
growth boosts power consumption and the government seeks to
bring electricity to remote areas with no access to the grid.

Each solar-thermal plant needs about 125 hectares (309
acres) of land, more than eight times the requirement for a
typical photovoltaic project in India, according to the Forum
for the Advancement of Solar Thermal industry group, or FAST.
Photovoltaic plants use panels to turn sunlight directly into
power; thermal stations use sunlight to heat liquids that
produce steam for generators.

India’s solar industry, still in its infancy, is seeking to
avoid the obstacles faced by mining companies including Coal
India Ltd., which said in October it may miss output targets in
2011 and 2012 because of delays in obtaining environmental
clearances.

2013 Deadline

The country has so far issued licenses for seven solar-
thermal plants, totaling 770 megawatts of capacity. Developers
need to start ordering turbines and other equipment to meet a
March 2013 deadline for commissioning, FAST Chief Operating
Officer Vijay Lakhanpal said in an e-mail.

Companies may forfeit bank guarantees of 208 million rupees
($4.7 million) to 1.8 billion rupees in the event of delays to
commissioning, according to government regulations. Publicly
traded companies that won licenses for the seven solar projects
include Reliance Power, Lanco and Godawari Power & Ispat Ltd.